This is a FOUR year project (not five like the others which are posted in chegg)

Question 12 A company is considering buying new fixed assets that would make its production faster and more cost-efficient. To be specific, it would help the company save $145,000 every year, before taxes. The price of acquiring these assets is $385,000. These fixed assets will be losing their economic value following the MACRS four-year property class schedule. The company is hoping to be able to sell the assets for $45,000 in four years when the project ends. The company would also need to plan for $20,000 in cash reserve that would be set aside immediately, and it would be necessary to increase it by $3,100 each year. The company pays 22 percent tax rate on its annual taxable income. The discount rate of 9 percent is appropriate for this project. Refer to Table 10.7 for relevant calculations. Calculate the Net Present Value associated with buying these fixed assets. NPV Should the company buy these fixed assets? Yes or No Table 10.7 Property Class Year Seven-Year 1 14.29% 2 24.49 3 17.49 4 12.49 5 8.93 6 8.92 7 8.93 8 4.46 Three-Year 33.33% 44.45 14.81 7.41 Five-Year 20.00% 32.00 19.20 11.52 11.52 5.76